Thread: Next year: Interesting times

http://www.saipantribune.com/newsstory. ... 4230&cat=3



"Meanwhile, on the "defense" front, I estimate that the costs of defense and related realms come to (are you ready for this?) over $425 per month (yes, per month) per U.S. household. Yet, the very most basic element of defense was abandoned: The nation’s borders are essentially open, and somewhere between 12 million and 20 million illegal aliens have invaded the nation, subsidized by, yes, the U.S. taxpayers, merrily underwriting their own ruination by providing free food, subsidized housing, free health care, free dental care, and free education. The immigrants can, quite literally, afford to breed more children than the taxpaying citizens can.

But hold on, it gets more dramatic: In terms of lost lives, it is estimated by some that 12 Americans per day (yes, per DAY) are murdered (yes, murdered) by illegal aliens. Folks, that’s 557 percent greater than America’s daily death toll in Iraq. The home insurgency is deadly indeed."

Next year: Interesting times

Ed Stephens Jr.
By Ed Stephens Jr.
Special to the Saipan Tribune

The year 2007 is going to bring mighty interesting times to the Commonwealth, as the sinking economic trajectory confronts the additional dynamic of the federalization gig. But that’s just the beginning of things: The Commonwealth is going to have a front row seat to Asia’s continued rise to global dominance, and that’s quite a profound event that will have some real drama to it.

Just to get your attention, it is possible, for example, that gas will climb over $4.50 a gallon on Saipan. I’m not necessarily predicting that it will, but I am saying that the U.S. dollar is going to take a bloody fall at some point, and if 2007 is the year when it happens, well, hang on. We’re talking an economic thriller here.

The dollar isn’t the only player in the plot. Overall, Uncle Sam, the Commonwealth’s generous patron and protector, has dug himself a deep hole, economically speaking, from which there is probably no return. This is history in the making.

For example, I just reviewed some data from the U.S. Bureau of Economic Analysis, in a Dec. 18 report that will make your heart skip a beat. Last quarter’s current account deficit (what the airhead media call the "trade deficit") was $225.6 billion.

Holy smokes, that’s getting close to $1 trillion on an annualized basis! That’s larger than the entire South Korean economy! At least much of that deficit money is flowing to Asia, straight into the pockets of Saipan’s tourism market.

Meanwhile, on the "defense" front, I estimate that the costs of defense and related realms come to (are you ready for this?) over $425 per month (yes, per month) per U.S. household. Yet, the very most basic element of defense was abandoned: The nation’s borders are essentially open, and somewhere between 12 million and 20 million illegal aliens have invaded the nation, subsidized by, yes, the U.S. taxpayers, merrily underwriting their own ruination by providing free food, subsidized housing, free health care, free dental care, and free education. The immigrants can, quite literally, afford to breed more children than the taxpaying citizens can.

But hold on, it gets more dramatic: In terms of lost lives, it is estimated by some that 12 Americans per day (yes, per DAY) are murdered (yes, murdered) by illegal aliens. Folks, that’s 557 percent greater than America’s daily death toll in Iraq. The home insurgency is deadly indeed.

Can you imagine Japan doing that to itself? China? South Korea? Taiwan? Singapore? Heck, even Thailand? Or the Philippines?

No, you can’t. In your wildest dreams, even with a head full of that potent, mind-zapping Singha beer, you can’t imagine it. Just try entering any such places illegally and then demanding food, an apartment, a doctor, a translator for the doctor, and schooling for your kids in their native tongue. What would happen? And why?

I won’t even dwell on the fact that U.S. household debt is at a post-Depression high, in totally unprecedented territory, sitting atop a mortgage time-bomb. But this is worth dwelling on: Government debt (federal, state, and local) comes to over $10 trillion; that's over $93,000 per American household. Yep, you read it here first. Possibly because nobody else even reports it.

Oh, savings rates for those households? Glad you asked. On average, negative. Yes, NEGATIVE!

Cazart, can you even wrap your head around all of this stuff? OK, can I? No.

In summary, the world's biggest economy, Saipan's guardian, is in trouble, but nobody knows how long it takes for such trouble to convert from “theoretical” to “tangible.” A year? A generation? I simply have no model to tell me the answer. But things are in such crazy territory that next year is likely to offer some excitement.

Indeed, the post-World War II era is closing. A new era is shaping up. So, like a man watching a big storm building on the horizon, I am in awe of the power that, once latent, becomes condensed, finally visible, and then violently released, changing lives in the process.

Stay tuned. The Commonwealth may not ponder the outside world much, but 2007 might shake it out of its yawning lack of curiosity.

* * *

Ed Stephens Jr. is an economist and columnist for the Saipan Tribune. His column runs every Friday. Contact Ed via his website, TropicalEd.com.










http://www.saipantribune.com/newsstory. ... 4230&cat=3

Excellent peice Crusader, thank's for posting it.

Meanwhile, on the "defense" front, I estimate that the costs of defense and related realms come to (are you ready for this?) over $425 per month (yes, per month) per U.S. household. Yet, the very most basic element of defense was abandoned: The nation’s borders are essentially open, and somewhere between 12 million and 20 million illegal aliens have invaded the nation, subsidized by, yes, the U.S. taxpayers, merrily underwriting their own ruination by providing free food, subsidized housing, free health care, free dental care, and free education. The immigrants can, quite literally, afford to breed more children than the taxpaying citizens can.

Talk about cringe-worthy. OUCH!